IPP
Industry prices fall 1.46% in December, but 2018 boosts the series
January 30, 2019 09h00 AM | Last Updated: January 30, 2019 09h36 AM
The decline of 1.46% in industry prices in December was not enough to avoid the 9.76% increase in the cumulative index in 2018, which was the highest in the time series started in 2014. The data are from the Producer Price Index (IPP), published today by the IBGE, which measures the price changes of products at the "factory gate", without taxes and freight, of 24 activities of the mining, quarrying and manufacturing industries.
Even with negative indices in the last three months, the balance for 2018 was the highest of the five years in the series. "The second highest increase occurred in 2015, of 8.8%. The biggest influences on the 2018 result were exerted by chemicals, which had a 19.7% change; food products, with 8.2%; basic metals, with 13.9%; and mining and quarrying industries, with 26.6% ", explains the manager of the IPP, Manuel Campos. Beverage was the only activity surveyed with a fall in prices in the year, with -2.79%.
In the Major Economic Categories, capital goods rose 10.86% in the year (with influence of 0.93 pp), intermediate goods, 13.25% (7.55 pp), and consumer goods, 3.71% (1.28 pp). In the latter, the result was affected by 0.50 pp for durable consumer goods and 0.78 pp for semi-durable and non-durable consumer goods.
International market causes price drop in petroleum in December
The three sharpest falls in prices in December 2018 occurred in products from petroleum refining and ethanol products (-9.36%), mining and quarrying (-8.13%) and other chemical products (-2.96%). The highest increase in the month came from other transportation equipment, with 2.18%.
"The last three months accumulated a decline of 3.7%. It was very much due to what happened to petroleum, which was influenced by price fall in the international market ", says the IPP manager.
The formation of the -1.46% index was more strongly influenced by petroleum refining and ethanol products (-1.13 pp), mining and quarrying industries (-0.39 pp), food products (-0.37 pp) and other chemical products (-0.32 pp).
Regarding the Major Economic Categories, the changes were 1.17% in capital goods (impact of 0.10 pp); -2.66% in intermediate goods (-1.58 pp) and 0.08% in consumer goods (0.03 pp), 0.49% in durable consumer goods and -0.05% in semi-durable and non-durable goods.
